Suppose the annual interest rate is 1.5% in the U.S. and 3.5% in the U.K., and that the spot exchange rate is S($/) = 1.6 and the forward exchange rate with 12-month maturity is F12($/) = 1.6521. Assume you are a U.S. trader and can borrow up to $1,000,000 (or 625,000). Answer the following questions. (1) Is there an arbitrage opportunity according to the Interest Rate Parity based on the above information? (Use the complete IRP formula. Don't use the approximation. Show your work!) (2) Show the strategy to capture the arbitrage profit by setting up the transactions required at t=0 (i.e., today) and cash flows at t=0 and t=1 i.e., today and 1-year from today) in a table format. (Your arbitrage profit should be in U.S. dollar.)